India Online Payment Apps Market Assessment, By Solution [Application Program Interface, Payment Gateway, Payment Processing, Others], By Payment Mode [Bank Cards, Digital Currencies, Digital Wallets, Net Banking, Point of Sales, Others], By Location [Proximity, Remote], By Enterprise Size [Large Enterprise, Small and Medium Enterprise], By End-use [BFSI, Healthcare, IT and Telecom, Media and Entertainment, Retail and E-Commerce, Others], By Region, Opportunities and Forecast, 2018-2032F

India online payment apps market has been growing drastically due to an increase in online transactions, a rise in penetration of smartphones and the internet, and ease of access to mobile payment applications.

India online payment apps market Size, Growth, Report 2032

India online payment apps market is growing due to factors such as increasing online transactions in e-commerce and m-commerce industry, a surge in penetration of smartphones and the Internet, and easily accessible payment apps along with the adoption of AI-based applications for payments. Online payments are made electronically among parties through digital platforms or technologies rather than cash or conventional banking procedures. The process of financial transactions uses mobile devices, the internet, and other electronic systems to trade money safely and effectively. Credit and debit card transactions, online bank transfers, mobile wallets, and new technologies, such as cryptocurrencies, are the means of common digital payment methods.
Online payment systems have become an integral part of modern economies as they offer users accessibility, speed, and ease everywhere. They have completely changed how individuals and businesses perform financial transactions by simplifying the process of transferring money, making purchases, and remotely managing accounts.
According to the NIC, at the end of 2023, UPI&rsquo;s total transaction volume stands at 83.75 billion. Contactless payment technologies such as near-field transactions and host card emulation ensure quick transactions and it leads to a reduction in customer queues. Mobile wallet proliferation is one of the most significant contributors to the growth of the online payment industry.
<a href="https://www.marketsandata.com/industry-reports/india-online-payment-apps-market/sample-request">Download Free Sample Report</a>
<h2 style="text-align: justify;">Increase in Online Payment Transactions Leads to Growth in the Market</h2>
Government organizations across the globe are encouraging digital transactions, which has led to the development of card payment platforms such as payment gateways. Payment gateways are used as a transactional authority while paying on any merchant website via credit cards, debit cards, and charge cards. The increase in the use of smartphones, tablets, and other Internet-enabled devices is fueling the M-commerce market. M-commerce reduces overhead costs and increases transactional efficiency by extinguishing the user's physical presence and other intermediaries. Advancements in wireless and mobile technologies will increase the number of transactions over the forecast period. As per RBI, retail online payments in India grew from 162 crore transactions in FY2012-13 to over 14,726 crore transactions in FY2023-FY24. Trust in online payments is based on transparency, ease of use, and security.
<h2 style="text-align: justify;">Smartphones and High-Speed Internet Usage Boosts the Market</h2>
The rate of adoption of smartphones in India has significantly increased in the past few years. The proliferation of 4G and 5G connectivity has enabled customers to have hassle-free access to conduct payments through smartphones. Moreover, comprehensive growth in the distribution network of smartphone companies has made smartphone devices easily available for end-users. For instance, Samsung and MI are major mobile phone brands in rural India, owing to their pan-India distribution channel, making online payments accessible to the rural population via their mobile phones.
The growing internet penetration in India reached a new milestone of 800 million as total active internet users reached 820 million 2023, that is, more than 55% of Indians used the internet last year. Internet penetration has grown across the nation at a modest 8% YoY. Furthermore, the increase in the use of smartphones and the expansion in faster connectivity have enabled retailers and customers to receive and make payments through their smartphones, which is propelling the growth of the online payment industry.
<h2 style="text-align: justify;">South Region Dominates the Market</h2>
As per regional segmentation, the South has shown a rapid growth in the use of online payment transactions and applications. According to MyGov data, India is the country with the highest number of digital transactions. This expansion in the market is due to the ease of access and reliability of payment apps for individuals and institutions. Also, the government is taking initiatives to make India digital and convert it into a cashless economy.
UPI transactions at retail stores in rural and semi-urban India rose 118 percent in 2023.&nbsp; The UPI transactions include banking and financial services, and digital services like utility payment, cash collection, credit, insurance, and many more indicating a significant behavioral shift among consumers in these regions towards aid to digital methods for their banking and lifestyle needs. The government of India has introduced several policies and initiatives such as Unified Payments Interface (UPI) and Bharat Interface for Money (BHIM) app, to make digital payments more accessible and convenient.
<h2 style="text-align: justify;">Online Payment Becomes an Indian Trend</h2>
Online payments market by mode of payment, includes digital wallets, credit cards, debit cards, online banking, and others. Digital wallets are regularly used for digital payments. They offer a convenient and secure way to make transactions online and through mobile devices and store payment information. They provide an efficient and standardized transaction process for digital payments by storing consumers&rsquo; debit and credit cards. Credit card companies apply several security measures to safeguard against fraudulent and unauthorized transactions, offering supplementary security features like two-factor authentication, fraud alerts, and real-time transaction monitoring.
Digital wallets are directly linked to cards, but they pose an indirect threat to card payments as they can be linked to users&rsquo; accounts, enabling A2A and P2P transfers by real-time payment (RTP) or even blockchain systems for back-end processing. It can make payment transactions more reliable and cost-effective for merchants, as they would reduce transaction fees compared to card scheme providers.
<h2 style="text-align: justify;">BFSI to Dominate the Market</h2>
The Banking, Financial Services, and Insurance segment dominates the online payment apps market and has the largest revenue share. With the advent of digitization, banks have opted for the virtual transaction system due to the several advantages it offers, like increased efficacy of the delivery of products and services, wider access of customers, improved quality of services, reduced operational and transactional costs, and increased financial inclusion. The launch of UPI 123PAY by the RBI governor has provided users to make digital transactions through UPI in assisted voice mode, enhancing digital transactions and financial inclusion in rural areas.
The utilization of digital payments in the healthcare sector is increasing due to fast payment processes, reduction in administrative expenses, and improved patient satisfaction. It is convenient for customers and helps businesses to reduce administrative costs. Contactless payment methods such as Near Field Communication (NFC) and Quick Response (QR) codes are becoming more popular in the hospitality industry.
Future Market Scenario&nbsp;(2025 &ndash; 2032F)
India has witnessed one of the most remarkable digital revolutions. Adoption of innovative platforms has led to tremendous growth such as UPI which has streamlined financial access for millions. Voice payments and the digital rupee are two emerging technologies that are expected to acquire popularity in forecast period. Launched in 2022, the Digital Rupee issued by the Reserved Bank of India is a sovereign currency that has the benefit of liquidity, settlement finality, and integrity.
Partnerships with merchants, banks, and other fintech companies will expand wallets and defend market share. UPI has been a mediator of the &lsquo;Bharat Bill Payment System (BBPS), which links payment services with utility providers.
Report Scope
&ldquo;India Online Payment Apps Market Assessment, Opportunities, and Forecast, FY2018-FY2032F&rdquo;, is a comprehensive report by Markets and data, providing in-depth analysis and qualitative and quantitative assessment of the current state of India online payment apps market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between FY2025 and FY2032. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
<table>
<tbody>
<tr>
<td width="301">
Report Attribute
</td>
<td width="301">
Details
</td>
</tr>
<tr>
<td width="301">
Base Year of the Analysis
</td>
<td width="301">
FY2024
</td>
</tr>
<tr>
<td width="301">
Historical Period
</td>
<td width="301">
FY2018-FY2023
</td>
</tr>
<tr>
<td width="301">
Forecast Period
</td>
<td width="301">
FY2025-FY2032
</td>
</tr>
<tr>
<td width="301">
Segments Covered
</td>
<td width="301">
Solution, Payment Mode, Location, Enterprise Size, End-use
</td>
</tr>
<tr>
<td width="301">
Regions Covered
</td>
<td width="301">
North, South, East, West and Central
</td>
</tr>
<tr>
<td width="301">
Key Companies Profiled
</td>
<td width="301">
One97 Communications (Paytm), PhonePe Private Limited, Amazon Pay (India) Private Limited, MobiKwik Systems Limited, Freecharge Payment Technologies Private Limited, National Payments Corporation of India (Bhim), Dreamplug Technologies Private Limited (CRED), ICICI Bank Limited (ICICI Pockets), State Bank of India (Yono SBI), HDFC Bank Limited (HDFC PayZapp)
</td>
</tr>
<tr>
<td width="301">
Customization Scope
</td>
<td width="301">
15% free report customization with purchase
</td>
</tr>
<tr>
<td width="301">
Pricing and Purchase Options
</td>
<td width="301">
Avail the customized purchase options to fulfil your precise research needs
</td>
</tr>
<tr>
<td width="301">
Delivery Format
</td>
<td width="301">
PDF and Excel through email (subject to the license purchased)
</td>
</tr>
</tbody>
</table>
In the report,&nbsp;India online payment apps market&nbsp;has been segmented into the following categories:
<ul style="text-align: justify;">
<li>By Solution
<ul>
<li>Application Program Interface</li>
<li>Payment Gateway</li>
<li>Payment Processing</li>
<li>Others</li>
</ul>
</li>
<li>By Payment Mode
<ul>
<li>Bank Cards</li>
<li>Digital Currencies</li>
<li>Digital Wallets</li>
<li>Net Banking</li>
<li>Point of Sales</li>
<li>Others</li>
</ul>
</li>
<li>By Location
<ul>
<li>Proximity</li>
<li>Remote</li>
</ul>
</li>
<li>By Enterprise Size
<ul>
<li>Large Enterprises</li>
<li>Small and Medium Enterprises</li>
</ul>
</li>
<li>By End-use
<ul>
<li>BFSI</li>
<li>Healthcare</li>
<li>IT and Telecom</li>
<li>Media and Entertainment</li>
<li>Retail and E-Commerce</li>
<li>Others</li>
</ul>
</li>
<li>By Region
<ul>
<li>North</li>
<li>South</li>
<li>East</li>
<li>West and Central</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
India online payment apps market is moderately competitive due to the presence of multiple players. These players in the market are adopting strategies such as product innovation, mergers, and acquisitions to expand their product portfolio, geographic reach, and competition in the market.
NPCI recently launched, Hello! UPI which is based on human-machine participation and is fostered by AI-enabled transactions. It allows users to give voice commands to transfer funds and input UPI PIN through UPI app, telecom calls, and IoT devices in Hindi and English and is soon going to be rolled in other Indian languages as well. It is especially beneficial for senior citizens, digitally illiterate, or visually impaired people.
Key Players Operating in India Online Payment Apps Market are:
<ul style="text-align: justify;">
<li>One97 Communications (Paytm)</li>
<li>PhonePe Private Limited</li>
<li>Amazon Pay (India) Private Limited</li>
<li>MobiKwik Systems Limited</li>
<li>Freecharge Payment Technologies Private Limited</li>
<li>National Payments Corporation of India (Bhim)</li>
<li>Dreamplug Technologies Private Limited (CRED)</li>
<li>ICICI Bank Limited (ICICI Pockets)</li>
<li>State Bank of India (Yono SBI)</li>
<li>HDFC Bank Limited (HDFC PayZapp)</li>
</ul>
Markets and Data&rsquo;s reports answer the following questions:
<ul style="text-align: justify;">
<li>What is the current and future market size of the product/service in question globally or specific to different countries?</li>
<li>How are the markets divided into different product/service segments and the market size and growth of each segment?&nbsp;</li>
<li>What is the market potential of different product segments and their investment case?</li>
<li>How are the markets predicted to develop in the future and what factors will drive or inhibit growth?</li>
<li>What is the business environment and regulatory landscape specific to the product/service?</li>
</ul>
If you can't find what you're searching for or have any custom requirements for India online payment apps market, you may approach our team at&nbsp;<a href="mailto:info@marketsandata.com">info@marketsandata.com</a>

FAQs

Industry Reports

Blogs

Case Studies

Industry News

Press Release

Infographics